CEO John Pleasants on the economics of Facebook games

Playdom CEO John Pleasants spoke last week at SXSW about the future of social gaming, and SocialTimes has summarized his observations on the current economics of Facebook games.

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Playdom CEO John Pleasants spoke last week at SXSW about the future of social gaming, and SocialTimes has summarized his observations on the current economics of Facebook games.

Besides talking pure numbers (the average Facebook game, for example, costs $100,000 to $300,000 to produce, not including marketing), Pleasants touched on the importance of microtransactions to the Facebook game’s revenue model (apparently microtransactions are responsible for 90% of Playdom’s revenue), the declining relevancy of MySpace, and the fact that it’s becoming more difficult to break into the social gaming space and to stand out from the increasingly crowded pack on Facebook.

[Read The Economics of Facebook Games at SocialTimes.]